| Islamabad: Sardar Yasir Ilyas Khan, President of the Islamabad Developer Association and former President of the Islamabad Chamber of Commerce and Industries, has expressed serious concerns over the recent announcement by the Federal Board of Revenue (FBR) to revise property valuation rates upward across 56 cities, effective from November 1, 2024.
In a statement, Khan warned that this increase in property valuation rates is expected to have detrimental effects on Pakistan’s real estate landscape and could potentially lead to further capital flight. He emphasized the significance of the real estate industry, which serves as a driving force for approximately 60 allied sectors. Khan highlighted that this decision could severely impact these sectors, creating a ripple effect throughout the economy.
Read: FBR receives NADRA data on 195,000 wealthy non-taxpayers
While acknowledging that the intention behind the FBR’s move may be to satisfy the International Monetary Fund (IMF) and reduce the country’s fiscal deficit—currently at a concerning 6% of Pakistan’s GDP, amounting to Rs. 7 trillion—Khan stressed the importance of engaging with the business community before implementing such significant changes.
“Maintaining business confidence is crucial in the face of policy changes,” Khan stated, adding that the current economic climate requires careful consideration to avoid disruptions in the business sector. He pointed out that the introduction of the Federal Excise Duty (FED) and the recent increase in capital gains tax to 15% this year have already contributed to a cessation of wealth circulation.
Read: Govt targets non-filers with property, vehicle purchase restrictions
Highlighting the contributions of Pakistani investors to the Dubai real estate market—amounting to USD 11 billion—Khan noted that these investors represent the second largest group of investors in the United Arab Emirates. He called for ongoing dialogue between the FBR and the business community to find a balance between achieving revenue targets and ensuring sustained growth and stability within the real estate sector.
As stakeholders await the implementation of the revised property valuation rates, the Islamabad Developer Association emphasizes the need for collaborative efforts to safeguard the interests of the real estate industry and the economy as a whole. |
|
